M&c Saatchi (LON:SAA) released today their preliminary results for 2009. Financial highlights included news that revenues were stable at GBP103.4 million and headline operating profit was GBP11.8 million - excluding impact of new offices. Headline operating margin was 10%, profit before tax £10.3 million, cash balance of £15.1 million. Group debt was at £4.4 million, down from £6.7 million in 2008 and total dividend for the year was at 3.62 pence per share.
The global advertising firm with a focus in the UK and Australia reported they plan to open new offices in South Africa and China, to establish new ownership in Australia and to grow their presence in the Middle East and North Africa. There is also an agreement in place to acquire a majority stake in Inside Mobile and to acquire a minority stake Quantam, a Lebanon based agency. Commenting on the results, David Kershaw, Chief Executive, said:
"M&C Saatchi has delivered in a challenging and unpredictable year. Through 2009 we kept a control on costs, ensuring that we maintained investment in the business. The Group is well placed to grow as the economic environment improves. In 2010 the Group is investing in new geographies and expanding our existing brands into new markets. We have announced the new office in South Africa and we will be expanding our presence in the Middle East and North Africa region. The Group is delighted to announce the acquisition of Inside Mobile, a fast-growing mobile marketing specialist. 2010 has started well both operationally and financially and the Group is well positioned to meet any pick up in demand. Visibility remains an issue, but we remain confident in our business model. The entry into new markets is still in the investment phase but is expected to move into profitability towards the end of the year. We expect returns on these investments in 2011. The Board looks forward to the year ahead with confidence".
In a separate report issued today, Saatchi announced it is to sell 20% of its Australian subsidiary to local management, Tom Dery and Tom McFarlane for a sum of AUD5 million. The loan is 50% Sterling and 50% Australian dollars and is unsecured. As per the report, the board believes the loan will incentivise the Australian…
